European Shares Climb on Healthcare Boost and US-China Truce

European shares extended their gains on Friday, bolstered by a strong performance in the healthcare sector. The markets were buoyed by positive sentiment following a temporary truce between the U.S. and China.

The STOXX 600 index, representing a diverse range of companies across Europe, rose by 0.4% by 0710 GMT. This marks the index's fifth consecutive weekly gain, reflecting a broader regional optimism. German bourses also saw positive movement, with one nearing an all-time high, while healthcare giants like Novo Nordisk and Novartis led the way with a 1.4% rise in their sub-index.

In the geopolitical arena, investors remained cautious as developments in Russia-Ukraine peace talks were closely watched. The dialogue takes place as Russian President Vladimir Putin hesitated to meet Ukrainian leader Volodymyr Zelenskiy. Financial markets are also anticipating key economic indicators, including the euro zone's trade balance and Italy's inflation rate due later today.

(With inputs from agencies.)